Solar energy solutions company Solarworld Energy Solutions has filed preliminary documents with market regulator SEBI to raise Rs 600 crore through initial public offering i.e. IPO. There will be fresh equity shares worth Rs 550 crore in the IPO, while the promoters will offer shares worth Rs 50 crore for sale through Offer for Sale (OFS).
Let us tell you that the promoters of the company are Pioneer Facor It Infradevelopers Private Limited. Promoters hold 82.15 per cent stake in the company and the remaining 17.85 per cent shares are held by public shareholders including Value Quest Scale Fund.
business model
This Uttar Pradesh-based company specializes in engineering, procurement and construction (EPC) services for solar energy projects. The company can raise Rs 110 crore through professional issue or any other means before filing the red herring prospectus with the registrar. If the company is successful in raising funds in the pre-IPO placement, the size of the fresh issue will be reduced. Solarworld Energy Solutions operates on two models. First – provides facilities related to solar energy through Capital Expenditure (CAPEX) model and second – through Renewable Energy (RESCO) model. Under these models, it also provides operation to maintenance (O&M) services. Nearly 95 per cent of its EPC projects by August 2024 have bundled O&M services for two to five years.
The company entered into an equity co-operation agreement with China’s Bloomberg NEF Tier-1 supplier ZNSHINE PV-Tech Co Ltd to set up a solar panel manufacturing facility in May 2024. Nuvama Wealth Management and SBI Capital Markets have been appointed as merchant bankers for the IPO.
Financials
Let us tell you that Solarworld Energy Solutions is in direct competition with companies like Sterling & Wilson Renewable Energy, Waaree Renewable Technologies, KPI Green Energy, Gensol Engineering and Oriana Power. If we look at last year’s financials, the net profit in FY 2024 has increased by 248 percent to Rs 51.7 crore. While the revenue has increased by 115.5 percent to Rs 501 crore.